Qatar on Thursday said it will not levy value added tax (VAT) in 2019 and neither will it impose tax on income of citizens and residents, even as it will establish a general tax authority (GTA).

Doha will grant further exemptions to key economic sectors and will not impose tax on investments in shares and profits but will impose selective taxes on health-damaging goods from the beginning of 2019, the Ministry of Finance said in the 2019 budget.

The GTA will be established as a separate entity, under the supervision of the Ministry of Finance, and will be in charge of the implementation of all tax laws. The GTA's mandate includes the implementation of all tax laws and setting up all related bylaws, procedures and instructions; reviewing and assessing tax return forms submitted by all establishments and the collection of taxes from subject entities; representing Qatar in relevant international and regional organisations as well as at international conferences and events; and signing agreements with other countries regarding the prevention of double taxation to encourage economic cooperation and joint investments.

On the proposed selective tax, the ministry said it is designed to impose taxes on certain health-damaging goods and it will be implemented by the beginning of 2019. The law includes a 100% tax on tobacco and its products and energy drinks, and a 50% tax on sugary drinks.

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